AMERICAN URANIUM LTD — Interim / Quarterly Report 2010

Jan 30, 2011

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ASX/Media Release

31st January, 2011

ACTIVITIES REPORT DECEMBER QUARTER 2010

• Advanced Project Generation – Gold Focus

• Highly Anomalous Rare Earth Auger Results, Yangibana

• Silver King Project Expanded

• $1.3 Million Cash at Bank, Listed Investments

Further advanced international project opportunities were evaluated during the Quarter, and additional ground was applied for at GTI’s Silver King project in the Gascoyne Province of Western Australia.

Significant Rare Earth Element potential has been confirmed by auger drilling results at Yangibana, and field work is planned to continue during 2011.

INTERNATIONAL PROJECT EVALUATION AND GENERATION

The Company’s bid for an advanced epithermal gold project, located in the Asia‐Pacific “Rim of Fire’, was submitted at the end of September 2010 and is currently awaiting Government decision and award. Substantial Indicated and Inferred mineral resources occur on the property, and GTI believes there is excellent potential for definition of additional gold resources which could lead to development and production should the bid be successful.

GTI has continued its search for other suitable projects world‐wide, pending the outcome of this internationally competitive tender.

Advanced opportunities assessed during the reporting period focussed on gold, and also included nickel, rare earths, iron ore, phosphate and energy projects.

Shareholders and investors will continue to be informed of progress on project acquisitions, as they advance past the preliminary phase.

WESTERN AUSTRALIAN PROJECTS

GTI’s projects in WA are prospective for gold, silver, base metals, rare earth elements and uranium. Silver King and Conical Hill are 100% GTI owned, while Yangibana, Cambridge Creek and Bali Hi are free‐ carried under JV until feasibility and are 30% GTI (except Bali Hi, 20%).

Rare Earth results from Yangibana confirmed highly anomalous levels of Cerium, Lanthanum, Neodymium and Praesodymium from 376 shallow auger holes. Best results, as reported by JV operator Artemis Resources Limited during the Quarter, are given in Table 1.

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The Yangibana project is 260km northeast of Carnarvon in Western Australia and includes extensive zones of gossans, developed at surface over a series of carbonatite dykes up to 10m thick and 25km long, within granitic basement.

Previous sampling by GTI of the main gossan zones at four prospects averaged 2.84% TREO (total rare earth oxides) , 2,234ppm Pb (lead) and 1,811ppm Zn (zinc) from 56 samples. Highest gossan rock chip sample result from GTI sampling was 19.44% total rare earth oxides.

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GTI Project Locations Yangibana Prospects and Tenure

Conclusions from this recent auger programme, which targeted the 4 prospects on currently granted tenure within the project area, were reported as follows:

• Yangibana North Prospect: sample results demonstrate strongly anomalous near‐surface levels of Cerium to 3,883ppm Ce, Lanthanum to 1,727ppm La, Neodymium to 1,585ppm Nd, Praseodymium to 490ppm Pr, Gadolinium to 100ppm Gd and occasional Samarium to 212ppm Sm.

• Yangibana South Prospect: anomalous elements include Cerium to 468ppm Ce, Neodymium to 596ppm Nd, Lanthanum to 136ppm La and Praseodymium to 101ppm Pr.

• Yangibana Prospect: anomalous concentrations of Cerium and Neodymium occur up to a peak of 234ppm Ce and 228ppm Nd.

• Bald Hill Prospect: Lanthanum and Neodymium are anomalous elements with values up to 179ppm La and 741ppm Nd.

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Auger samples were analysed for a full suite of rare earth and rare metal elements, along with precious and base metals. Uranium and thorium both returned weak anomalism.

Mapping of gossanous outcrop, Yangibana

	Ce	Gd	La	Nd	Pr	Sm
Sample	ppm	ppm	ppm	ppm	ppm	ppm
YA683	3,883.07	99.86	1,727.46	1,585.92	490.37	212.61
YA684	1,165.36	32.45	531.86	509.15	150.94	67.15
YA685	1,897.18	48.30	856.32	804.81	244.07	103.59
YA686	1,892.84	49.39	858.53	794.62	242.42	103.09
YA687	1,986.76	56.29	896.73	868.50	258.69	118.20
YA691	2,537.20	67.05	1,119.20	1,073.82	320.07	138.85
YA692	3,030.71	72.09	1,381.64	1,235.14	383.58	152.70
YA693	1,609.09	58.29	689.73	761.40	221.45	113.08
YA694	2,686.75	67.63	1,263.25	1,127.32	349.42	143.49
YA695	1,009.76	31.51	444.00	452.63	134.53	62.13
YA696	1,151.91	34.93	515.68	523.60	154.34	69.76
YA697	1,298.79	29.70	598.88	536.71	165.33	62.78
YA698	1,651.21	48.19	726.92	724.37	215.69	98.27
YA699	1,028.37	37.19	443.09	483.17	139.64	71.13
YA700	1,075.72	31.45	479.71	478.69	144.74	61.36
YA701	1,051.34	30.44	469.34	467.50	142.17	59.97
YA709	1,109.14	35.70	454.31	511.30	151.65	69.11
YA719	1,480.50	38.78	659.99	649.55	196.31	80.09
YA720	1,278.19	32.81	549.89	548.98	166.86	68.13
YA737	1,115.01	37.92	502.18	510.89	147.12	76.71
YA740	2,036.44	47.92	863.53	843.66	259.03	105.74
YA741	1,018.25	26.29	441.09	436.96	131.84	56.13
YA786	1,646.63	32.22	742.87	637.24	200.87	74.69
YA942	582.16	45.19	170.30	571.10	119.86	84.33
YA955	648.59	51.07	179.83	741.89	146.86	109.05

Table 1: Best Results, Yangibana Auger Drilling (as reported 3 November, 2010)

(Explanation of symbols: Ce: Cerium Gd: Gadolinium La: Lanthanaum Nd: Neodymium Pr: Praseodymium Sm: Samarium)

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At Silver King , new exploration licence application E08/2225 covers a number of recorded historical workings. Grab sampling from a shallow pit at Dark Horse has returned grades of 55.73% copper and 340g/t silver, from quartz reef with disseminated and patchy massive copper mineralisation (Maitland, WA Geological Survey Bulletin 33).

At another old shaft some 1,500 metres to the southeast of Dark Horse, previous explorers Falcona Exploration and Mining recorded 0.85% copper and 0.61g/t gold from rock chip sampling.

The main Silver King mining area lies approximately 2 kilometres further southeast from this pit, and has recorded historical production of 38,927oz of silver and small tonnages of high‐grade copper.

Exploration planned during the current field season will define targets for drill testing.

Exploration results from Bali Hi and Cambridge Creek programmes will be reported once received from the JV operator.

At GTI’s wholly‐owned Conical Hill project, no field work was undertaken pending granting of the three exploration licence applications which total 101 blocks.

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Murray McDonald Executive Chairman

Competent Person: The contents of this report that relate to geology and exploration results are based on information compiled by consulting geologist Ian Cowden of Iana Pty Ltd, who is a Fellow of the Australasian Institute of Mining and Metallurgy, a Chartered Professional Geologist and a Member of the Australian Institute of Geoscientists. He has sufficient experience relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a “Competent Person”, as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ian Cowden consents to the inclusion in this report of the matters compiled by him in the form and context in which they appear.

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

	Name of entity		Quarter ended (“current quarter”) 31 December 2010	Quarter ended (“current quarter”) 31 December 2010
	GTI Resources Ltd
	ABN 33 124 792 132 Consolidated statement of cash flows
			31 December 2010
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other Net Operating Cash Flows		Current quarter $A’000		Year to date (12 months) $A’000
		- (70) - - (95) - 10 (1) - -		- (465) - - (393) - 51 (1) - -
		(156)		(808)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c)other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		(18) (28) (2) - - - - - -		(32) (77) (4) - - - - - -
		(48)		(113)
		(204)		(921)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(204)	(921)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (capital raising costs) Net financing cash flows	- - - - - -	- - - - - -
	-	-
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter ¹	(204) 1,168 -	(921) 1,885 -
	964	964

¹ In addition to cash on hand, the company also held investments in Australian Listed Companies with a market value at the end of the reporting period of $304,000.

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		115
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Payment of directors’ salaries, superannuation and consulting fees during the quarter.

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	130
	-
	-
	100
Total	230

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter		Previous quarter
shown in the consolidated statement of cash flows) to	$A’000		$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank		964		1,168
5.2 Deposits at call		-		-
5.3 Bank overdraft		-		-
5.4 Other ¹		-		-
Total: cash at end of quarter(item 1.22)		964		1,168

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	ELA08/2225	Application	0%	100%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	38,000,003	38,000,003
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	4,500,000 125,000 125,000	- - -	Exercise price 40 cents 20 cents 30 cents	Expiry date 19/12/11 30/06/11 30/06/11
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act.

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 31 January 2011 (Executive Chairman)

Print name: Murray McDonald

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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• See chapter 19 for defined terms.

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